By Jerry J. Weygandt
Weygandt's Accounting ideas introduces tough accounting ideas with examples which are normal to accountants. the recent version has been up to date with the newest IFRS/IASB criteria. extra insurance is incorporated on foreign currencies translation and LCM. extra discussions specialize in probability administration because of the monetary trouble. The examples additionally emphasize present examples as a way to aid accountants make the relationship to their daily lives.
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Extra info for Accounting Principles , Tenth Edition
Assets increase because of the expected future benefits of using the paper and supplies, and liabilities increase by the amount due Acme Company. The asset Supplies increases $1,600, and the liability Accounts Payable increases by $1,600. indd Page 17 11/26/10 2:11:10 PM user-s146 /Users/user-s146/Desktop/Merry_X-Mas/New Using the Accounting Equation 17 Total assets are now $16,600. This total is matched by a $1,600 creditor’s claim and a $15,000 ownership claim. Transaction (4). Services Provided for Cash.
6. 7. 8. Joan invested $11,000 in cash in the law practice. Paid $800 for July rent on office space. Purchased office equipment on account $3,000. Provided legal services to clients for cash $1,500. Borrowed $700 cash from a bank on a note payable. Performed legal services for client on account $2,000. Paid monthly expenses: salaries and wages $500, utilities $300, and supplies $100. Joan withdraws $1,000 cash for personal use. Instructions (a) Prepare a tabular summary of the transactions. (b) Prepare the income statement, owner’s equity statement, and balance sheet at July 31 for Joan Robinson, Attorney.
1. The three steps in the accounting process are identification, recording, and communication. 2. The two most common types of external users are investors and company officers. 3. Congress passed the Sarbanes-Oxley Act of 2002 to reduce unethical behavior and decrease the likelihood of future corporate scandals. 4. The primary accounting standard-setting body in the United States is the Financial Accounting Standards Board (FASB). 5. The cost principle dictates that companies record assets at their cost.